Second, our findings suggest that leisure spending has a social or relational component. In Models 2 through 4, we add controls—one at a time—for depression, loneliness, and embeddedness in social networks. In Model 5, we add all three controls. Leisure spending is associated in part with higher levels of happiness through its social effect—by reducing loneliness and increasing embeddedness in social networks. This can be seen in Models 2 through 5.